The Auto Mart is trying to decide whether to lease or buy some new equipment. The equipment costs $74,000, has a 3-year life, and will be worthless after the 3 years. The after-tax discount rate is 5.5 percent. The annual CCA tax shield is $10,500 and the after-tax annual lease payment is $16,033. What is the net advantage to leasing?

Select one:

A. $8,316

B. $2,416

C. $7,453

D. $9,518

E. -$3,509